The Rent vs Buy Calculator compares modeled buyer and renter net worth over a chosen period. It includes home price, deposit, mortgage, property tax, maintenance, appreciation, rent increases, renter insurance, selling costs, and investment return.
The model compounds monthly and assigns cash-flow differences to buyer or renter investments. At the end, buyer equity is home value minus remaining loan and selling costs; renter net worth is the invested balance.
Example
For a 1,800 monthly rent, 3% annual rent growth, and a 10-year comparison, the calculator projects both paths using the entered appreciation, costs, and investment return rather than assuming rent or home values stay flat.
Questions
Does buying always build more wealth?
No. The outcome depends on holding period, transaction costs, appreciation, rent, maintenance, financing, and what the renter invests.
Are taxes included?
Only the property-tax rate entered in the model. Income tax, deductions, and local rules are not fully modeled.
What does buyer sunk cost mean?
It tracks modeled costs such as closing, interest, property tax, maintenance, and selling costs that do not become home equity.
Limitations
This is a scenario comparison, not financial advice or a forecast of housing or investment returns.